Tag Archives: shareholders

The Value of Undiversified Shareholder Engagement 

By | December 22, 2022

Modern capital markets facilitate the separation of ownership and control. This allows shareholders to diversify their portfolios and firms to undertake value-generating projects regardless of their level of idiosyncratic risk. However, the universal push for diversification often means that shareholders do not bear sufficient risk to incentivize them to monitor the firms in their portfolios.… Read More »

A MACRO-LEVEL INVESTIGATION OF TRANSATLANTIC CONTROLLING SHAREHOLDER’S FIDUCIARY DUTY

By | July 30, 2021

Legal systems around the world apply various strategies to mitigate agency costs between controlling and minority shareholders. In my recent paper, I provide a systematic review of the transnational law on controlling shareholder’s loyalty and care obligations by exploring the cultural, historical, and socio-economic backgrounds embodied in different doctrinal choices. A. Doctrinal Strategies for Regulating Controlling… Read More »

Does CSR Engender Trust? Evidence From Investor Reactions to Corporate Disclosures

By | July 7, 2021

Growth in corporate social responsibility (CSR) practices is an undeniable fact of modern business. 90% of S&P 500 firms published a corporate sustainability report in 2020, up from merely 20% in 2011. As more and more firms adopt CSR practices, a key question emerges: how do such activities impact investor perceptions of firms? Proponents of… Read More »